Mesodermal stem cells or ES cells, prepared from the mononuclear cell fractionisolated from bone marrow fluid or umbilical blood, were found todifferentiate into neuralstem cells, neurons, or glial cells when cultured in a basal culture medium.In addition, thedifferentiation of the mesodermal stem cells or ES cells into neural cells waspromotedthrough the addition of an ischemic brain extract to the above-mentioned basalculturemedium. Furthermore, the neural cells obtained using the above-describedmethod forinducing differentiation were revealed to have neural regeneration potency ina braininfarction model, a dementia model, a spinal cord injury model and ademyelination model.In addition, according to the present invention, mesodermal stem cells can bedifferentiated into neural cells by immortalizing the mesodermal stem cells byhighlyexpressing or activating an immortalization gene in the mesodermal stem cellsand culturingthe cells under an appropriate condition. The methods of the present inventionare veryuseful in the medical field of neural regeneration.